20-85 - 12-15 - GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF HOUSING FACILITY REVENUE BONDS TO FINANCE A MULTIFAMILY HOUSING PROJECT PURSUANT TO MINNESOTA LAW - GOLDEN GARDENS – SECTOR 612 COMPLEX PROJECT
RESOLUTION NO. 20-85
ESOLUTION GIVING PRELIMINARY APPROVAL
R
TO THE ISSUANCE OF HOUSING FACILITY REVENUE BONDS
TO FINANCE A MULTIFAMILY HOUSING PROJECT
PURSUANT TO MINNESOTA LAW
(GOLDEN GARDENS – SECTOR 612 COMPLEX PROJECT)
WHEREAS, Minnesota Statutes, Chapter 462C (the "Act"), confers upon cities, the
power to issue revenue obligations to finance multifamily housing developments within
the boundaries of the city; and
WHEREAS, the City Council of the City of Golden Valley, Minnesota (the "City")
has received a proposal from Quad - Park Developments, LLC, a Delaware limited liability
company, as managing member of, and on behalf of, Golden Gardens, LLC, a Minnesota
limited liability company (or an affiliated entity, the "Borrower"), that the City assist in
financing a Project hereinafter described, through the issuance of revenue bonds or
obligations (in one or more series) (the "Bonds") to be issued in 2021 pursuant to the Act;
and
WHEREAS, the City desires to facilitate the preservation and development of
multifamily rental housing within the community; encourage the development of affordable
housing opportunities for residents of the City; encourage the development and
preservation of housing facilities designed for occupancy by low- and moderate-income
households; and encourage the development of blighted or underutilized land and
structures within the boundaries of the City; and the Project will assist the City in achieving
these objectives; and
WHEREAS, the Project to be financed by the Bonds consists of the acquisition,
design, construction, improvement, and equipping of an approximately 90,000 square-
foot mixed-use development, including approximately 78 residential units for low- and
moderate-income households, and certain functionally related improvements, expected
to be known as Golden Gardens – Sector 612 Complex, to be located at 9010 Golden
Valley Road in the City (the "Project"); and
WHEREAS, the Borrower will be the owner of the Project; and
WHEREAS, no public official of the City has either a direct or indirect financial
interest in the Project nor will any public official either directly or indirectly benefit
financially from the Project:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Golden Valley, Minnesota, as follows:
1.The City hereby gives preliminary approval to the proposal that the
Borrower undertake the Project, and the City undertake the program of financing therefor,
pursuant to the Act, consisting of financing the Project pursuant to the Borrower's
specifications and to a loan agreement between the City and the Borrower on such terms
and conditions with provisions for revision from time to time as necessary, so as to
produce income and revenues sufficient to pay, when due, the principal and interest on
the Bonds in a total principal amount not to exceed $25,000,000 to be issued pursuant to
the Act to finance the Project; and said agreement may also provide for the entire interest
of the Borrower therein to be mortgaged to the purchasers of the Bonds, or a trustee for
the holder(s) of the Bonds; and the City, acting by and through the City, hereby
undertakes preliminarily to issue its Bonds in accordance with such terms and conditions.
2. At the option of the City, the financing may be structured so as to take
advantage of whatever means are available and are permitted by law to enhance the
security for, or marketability of, the Bonds; provided that any such financing structure
must be consented to by the Borrower.
3. On the basis of information available to the City it appears, and the City
hereby finds, that the Project constitutes a multifamily housing development within the
meaning of subdivision 5 of Section 462C.02 of the Housing Program Act; that the
availability of the financing under the Housing Program Act and the willingness of the City
to furnish such financing will be a substantial inducement to the Borrower to undertake
the Project, and that the effect of the Project, if undertaken, will be to encourage the
construction and preservation of new and existing multifamily rental housing opportunities
for residents of the community, and to promote more intensive development and use of
land within the community.
4. The Project and the program to finance the Project by the issuance of
revenue obligations are hereby given preliminary approval by the City subject to (i) review
of a housing program providing the information required by Section 462C.03, subdivision
1a, of the Housing Program Act (the “Housing Program”) by the Metropolitan Council; (ii)
receipt of an allocation of the bonding authority from the State of Minnesota; (iii) a public
hearing as required by the Housing Program Act and Section 147(f) of the Code; (iv) final
approval following the preparation of bond documents; (v) final determination by the City
Council that the financing of the Project and the issuance of the Bonds are in the best
interests of the City; and (vi) final approval by the City, the Borrower, and the purchasers
of the Bonds as to ultimate details of the financing of the Project.
5. The Borrower has agreed and it is hereby determined that any and all costs
incurred by the City in connection with the financing of the Project whether or not the
Project is carried to completion will be paid by the Borrower.
6. Kennedy & Graven, Chartered, acting as bond counsel, is authorized to
assist in the preparation and review of necessary documents relating to the Project, and
the financing and the Application for Allocation of Bonding Authority therefor, and to
submit such documents to the City and the Department of Management and Budget of
the State of Minnesota.
7. Nothing in this Resolution or the documents prepared pursuant hereto shall
authorize the expenditure of any municipal funds on the Project other than the revenues
derived from the Project or otherwise granted to the City for this purpose. The Bonds
shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property
or funds of the City except the revenue and proceeds pledged to the payment thereof,
nor shall the City be subject to any liability thereon. The holder of the Bonds shall never
have the right to compel any exercise of the taxing power of the City to pay the
outstanding principal on the Bonds or the interest thereon, or to enforce payment thereon
against any property of the City, except such property as may be expressly pledged for
the security of the Bonds. The Bonds shall recite in substance that the Bonds, including
the interest thereon, are payable solely from the revenue and proceeds pledged to the
payment thereof. The Bonds shall not constitute a debt of the City within the meaning of
any constitutional or statutory limitation.
8. Subject to final approval of the Project by the City and in anticipation of the
approval by all necessary entities of the housing program and the issuance of the Bonds
to finance all or a portion of the Project, and in order that completion of the Project will
not be unduly delayed when approved, the Borrower is hereby authorized to make such
expenditures and advances toward payment of that portion of the costs of the Project to
be financed from the proceeds of the Bonds, as the Borrower considers necessary,
including the use of interim, short term financing, subject to reimbursement from the
proceeds of the Bonds, if any, when delivered but otherwise without liability on the part of
the City.
9. Pursuant to the Borrower’s request, and United States Treasury
Regulations Section 1.150-2, the City hereby memorializes the Borrower’s intent to
reimburse itself with proceeds of the Bonds for expenditures related to the Project
incurred prior to the issuance of the Bonds. The maximum principal amount of the Bonds
to be issued by the City is $25,000,000.
Adopted by the City Council of the City of Golden Valley, Minnesota, this 15th day of
December, 2020.
__________________________________
Shepard M. Harris, Mayor
ATTEST:
_________________________
Theresa Schyma, City Clerk